Assume there are two people in a society. Person A is willing to pay $140 to have one unit of a public good produced and Person B is willing to pay $160 to have one unit of a public good produced and $140 to have two units produced. As a result, society would be willing to pay a price of ________ of this public good.
A. $300 for 1 unit
B. $200 for 1 unit
C. $200 for 3 units
D. $160 for 5 units
Answer: A
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Barter is the:
A. direct exchange of goods and services. B. exchange of goods, but not services. C. system that does not depend on a coincidence of wants. D. system used in advanced economies.
What are the basic differences between public choice theory and the economics of taxation?
Please provide the best answer for the statement.
In the short run, the price at which a firm's total revenues equal its total costs is
A) a point of positive profits. B) a no return price. C) the short-run shutdown point. D) the short-run break-even point.
In the above figure, the long-run average cost curve exhibits economies of scale
A) between 5 and 10 units per hour. B) between 10 and 20 units per hour. C) between 20 and 25 units per hour. D) along the entire curve.